Micron's 700% Rally Cools as SK Hynix IPO and Overcrowded Trade Trigger a 26% Correction
Published on 07/13/2026 at 12:45 | Redaktion boerse-global.de
Micron’s latest quarterly numbers were anything but disappointing, yet the stock has given back more than a quarter of its value since hitting a record high in late June — a disconnect that is testing the narrative around the AI memory cycle. The memory-chip maker closed Monday at €812.80, down 5.19% on the day and roughly 26% below the peak of €1,103.80 reached on June 25. Even after the slide, the shares remain up 202% year to date and have surged nearly 700% over the past twelve months.
The selloff is all the more striking given the strength of Micron’s underlying business. In its third fiscal quarter, the company posted record revenue of $41.5 billion — more than quadruple the prior-year period — and handily beat Wall Street’s top-line expectations. Earnings per share forecasts also came in ahead of estimates, while management guided for a gross margin of roughly 86% in the current quarter, underscoring the punch of the AI-driven memory supercycle. On the partnership front, Micron recently announced a technology-development tie-up with Anthropic, positioning itself as more than a mere component supplier in the artificial intelligence ecosystem.
So why the downward pressure? A confluence of technical and competitive forces is at play. The immediate trigger appears to be the Nasdaq IPO of South Korean rival SK Hynix, which has drawn significant investor attention this week and heightened fears of a market share battle in the high-bandwidth memory segment. Separately, Samsung Electronics released preliminary second-quarter results showing a sharp profit increase, yet the stock sold off — a classic “sell the news” pattern that has spilled over to Micron. Since its own stellar earnings report on June 24, Micron has lost 22%, and the stock now trades below the level it commanded before those results hit the tape.
Should investors sell immediately? Or is it worth buying Micron?
Market strategists point to overcrowded positioning as a deeper cause. One analyst described the momentum trade in Micron as having become a “consensus consensus” — so widely owned that even good news fails to push the stock higher. That view is not universal, however. Citi has placed Micron on its 90-day positive catalyst watchlist, with analyst Atif Malik arguing that DRAM pricing will continue to rise and that the pullback represents a buying opportunity. On the other side, a Seeking Alpha contributor downgraded the stock to Sell, citing the SK Hynix IPO and Samsung’s revenue miss as headwinds that could drive a correction of 20–25% before a re-entry point emerges.
Technically, the stock has retreated from heavily overbought territory to neutral. The relative strength index sits at 45.3, while the 30-day annualized volatility remains elevated at around 110%. The 50-day moving average of €809.71 sits just below the current price, indicating that short-term momentum is being rebalanced. Longer-term supports remain intact: Micron still trades 97% above its 200-day average of €412.47 and 38% above its 100-day average of €587.83.
Some analysts characterize the divergence between record financial performance and falling share price as skepticism about the durability of the memory cycle rather than a company-specific issue. The memory market is inherently cyclical, they note, and even an unprecedented AI-driven demand wave may not sustain current pricing indefinitely. For now, investors are left weighing whether the pullback is a healthy breather after a near-threefold rally in a few months — or the beginning of a deeper correction that will test the resilience of the AI memory trade.
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